[nsantelli]

For a short time I was a financial advisor. DISCLAIMER - I no longer hold any certifications of any kind nor do I give any financial advice of any kind. However, I do share past experiences.
When I started in the advisor business, Monte Carlo simulation was getting a lot of attention. However, the firm I worked for did not use it because it was considered too “formula”. It did not take into consideration, the individual needs and desires of the client. We called it the lazy advisor tool. However, some firms did use it as a starting point when developing a distribution plan. Also, at that time non-traded REITs were becoming popular among advisors because of the high fees earned by selling these products. Non-traded RIETs and variable annuities are huge profit centers for many financial advisory companies.

[PersonOfInterest]

Originally Posted by Caymus

I understand all that. The problem (as I see it) is that I have always lived too fugally and have done so for years. Doing my work years most of my income went into investments or taxes. I was hoping to find a mathematical model that tells me how much to spend based on my assets. Maybe I need a psychoanalyst instead.

Here's the mathematical model. Calculate the number of years until your death. Divide the amount of your assets exceeding living expenses by the number of years you calculated to death. Spend that much.

Sounds like you are going to have a problem accepting spending money in retirement. The alternative is to keep accumulating as you like to do and leave it to your heirs or give it to charity. My personal philosophy is to spend whatever I want to spend on any frivolous thing I can think of that gives me pleasure and enjoyment. When I've depleted the excess assets then I will no longer be able to spend. I'll either die before I've depleted the assets and what's left will go to my heirs, or I'll reach a point where there is nothing left to spend and the heirs will get nothing.

[retiredguy123]

Originally Posted by PersonOfInterest

Here's the mathematical model. Calculate the number of years until your death. Divide the amount of your assets exceeding living expenses by the number of years you calculated to death. Spend that much.

Sounds like you are going to have a problem accepting spending money in retirement. The alternative is to keep accumulating as you like to do and leave it to your heirs or give it to charity. My personal philosophy is to spend whatever I want to spend on any frivolous thing I can think of that gives me pleasure and enjoyment. When I've depleted the excess assets then I will no longer be able to spend. I'll either die before I've depleted the assets and what's left will go to my heirs, or I'll reach a point where there is nothing left to spend and the heirs will get nothing.

The problem is that a hardcore saver does not derive pleasure and enjoyment by spending money on frivolous things.

[MidWestIA]

With the market weak I'm jepi pretty heavy they pay monthly dividends

If you like the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) then you’re going to love its 11.9%-yielding counterpart, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ).

[Robbb]

Originally Posted by Caymus

So, I am currently interviewing advisors. In my case, I am trying a find a fee-based advisor who can help me determine how much money I should be "paying" myself (before RMD's kick in). I have always lived below my means and am finding it difficult to open the spending floodgates during my first year of retirement.

The advisor I recently talked to has a relationship with my former company. They have a reasonable fee structure to develop a plan - Monte Carlo Simulation etc. One thing they suggested for income are Nontraded REITs. I read that they may not be easy to sell, and I assume they have high trading fees. Any opinions? I already have REIT funds inside my Roth IRA. They have done well until recently.

Totally IMHO, you can do the vast majority of this yourself. There must be 1,000 Monte Carlo Simulations online, just google it. Some are very simple some can get very in depth, but all are very easy to navigate. Regarding non traded Reits, my first question to your guy would be why? what's the advantage?? I presume its in his advantage to sell them but how does this benefit you?

[jandr]

Originally Posted by Caymus

So, I am currently interviewing advisors. In my case, I am trying a find a fee-based advisor who can help me determine how much money I should be "paying" myself (before RMD's kick in). I have always lived below my means and am finding it difficult to open the spending floodgates during my first year of retirement.

The advisor I recently talked to has a relationship with my former company. They have a reasonable fee structure to develop a plan - Monte Carlo Simulation etc. One thing they suggested for income are Nontraded REITs. I read that they may not be easy to sell, and I assume they have high trading fees. Any opinions? I already have REIT funds inside my Roth IRA. They have done well until recently.

Had a terrible experience with a REIT in the '90s. Lost about 75% of my investment when the dust Finally settled. I think Commercial real estate would be Especially dicey these days.

[Robbb]

Originally Posted by MidWestIA

With the market weak I'm jepi pretty heavy they pay monthly dividends

If you like the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) then you’re going to love its 11.9%-yielding counterpart, the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ).

Hmm you sure of those numbers? why would a fund pay 11.9% when the average dividend on a Nasdaq stock is probably less than 1%? Something is not adding up.

[Caymus]

Originally Posted by retiredguy123

The problem is that a hardcore saver does not derive pleasure and enjoyment by spending money on frivolous things.

I have read some articles that addresses that. In my case, I grew up in poverty and am currently spending much more money than I ever thought I would.

Maybe I would have different thought patterns if I grew up in the suburbs with a country club membership.

[Donnahamilton999]

I use The Mather Group for the last five years and I’ve been very happy with that. They charge a flat fee percent based on your total funds.

[Stu from NYC]

Originally Posted by Robbb

Hmm you sure of those numbers? why would a fund pay 11.9% when the average dividend on a Nasdaq stock is probably less than 1%? Something is not adding up.

Risky stocks in their portfolio. Run

[KCAlan]

Originally Posted by Caymus

So, I am currently interviewing advisors. In my case, I am trying a find a fee-based advisor who can help me determine how much money I should be "paying" myself (before RMD's kick in). I have always lived below my means and am finding it difficult to open the spending floodgates during my first year of retirement.

The advisor I recently talked to has a relationship with my former company. They have a reasonable fee structure to develop a plan - Monte Carlo Simulation etc. One thing they suggested for income are Nontraded REITs. I read that they may not be easy to sell, and I assume they have high trading fees. Any opinions? I already have REIT funds inside my Roth IRA. They have done well until recently.

My advisor in Kansas City only recommends one non-traded REIT, does not recommend annuities and their fees are less than 1%. They also provide quarterly meetings either in person or via Zoom. I have been happy with them over the last 6 years. All investment plans are based on your goals and risk tolerance.

Message me and I can forward their contact info.

[Mrfriendly]

One thing they suggested for income are Nontraded REITs. I read that they may not be easy to sell, and I assume they have high trading fees. Any opinions?

No opinion on your REIT question. We more recently consolidated our accounts and went with Vanguard after interviewing T Rowe, Schwab and Fidelity. Stocks/Bonds and reinvest dividends. My losses are
minimal compared to what I was invested in during this spend happy administration. I’m a little tight myself thinking of the save for a rainy day is a good thing.

[retiredguy123]

If an advisor recommends an REIT, read the prospectus. Does the real estate they are investing in make sense? What are the proposed salaries of the REIT managers? Do they have a successful resume? Is there any incentive for the managers to make a profit on the real estate, or are they just collecting a salary even if the investors lose money?

Note that anyone can establish an REIT and write a prospectus that names them as the CEO with a huge salary. Then, they hire brokers to sell the shares, and lawyers, accountants, real estate professionals, etc. to buy the real estate and to manage it. As long as they sell enough shares, they can make a lot of money even if the REIT goes broke.

[Caymus]

Originally Posted by retiredguy123

If an advisor recommends an REIT, read the prospectus. Does the real estate they are investing in make sense? What are the proposed salaries of the REIT managers? Do they have a successful resume? Is there any incentive for the managers to make a profit on the real estate, or are they just collecting a salary even if the investors lose money?

Note that anyone can establish an REIT and write a prospectus that names them as the CEO with a huge salary. Then, they hire brokers to sell the shares, and lawyers, accountants, real estate professionals, etc. to buy the real estate and to manage it. As long as they sell enough shares, they can make a lot of money even if the REIT goes broke.

I don't see myself buying one. I already own two REIT funds in my Roth IRA. If I were to buy a single REIT at this time it would be VICI Properties.

I am not going to use this advisor. I have a few more plus a CPA to interview next week. Being retired, I have plenty of time to investigate.

[nn0wheremann]

Originally Posted by Caymus

I understand all that. The problem (as I see it) is that I have always lived too fugally and have done so for years. Doing my work years most of my income went into investments or taxes. I was hoping to find a mathematical model that tells me how much to spend based on my assets. Maybe I need a psychoanalyst instead.

In the immortal words of Max Bialystok, “When you got it, flaunt it!”